Mortgage Update: Great News! Rates are Trending Down + New Conforming Loan Limits for 2024

Mortgage Update: Great News! Rates are Trending Down + New Conforming Loan Limits for 2024

In the ever-shifting world of interest rates, recent developments bring a breath of fresh air to potential borrowers and investors alike. Here's a roundup of the current interest rate landscape, new 2024 loan limits, and why the outlook is brighter compared to earlier this year.

Interest Rate Trend: A Welcome Respite

Today's interest rates for "top-tier" borrowers are showing a downward trend, offering a promising sign for those navigating the real estate market. As rates decrease, the affordability of homes increases, creating a favorable environment for individuals looking to make their homeownership dreams a reality. For example, a 30 year fixed mortgage rate is now 7.13% and a 15 year fixed mortgage rate is now 6.50%. 

2024 Loan Limits: Navigating the New Norm

With housing prices on the rise, loan limits play a crucial role in ensuring accessibility for a diverse range of buyers. The Federal Housing Finance Agency (FHFA) has recently unveiled the conforming loan limits for 2024, providing a roadmap for borrowers based on property units and county locations.

High-cost areas, such as many counties in the Bay Area, have higher limits known as "conventional high balance" loans. While these loans maintain the conventional structure, they come with slightly higher interest rates.

For a quick glance at the new limits, let's take a look at some key counties:

Marin – San Francisco – Alameda:

  • 1 unit: $1,149,825
  • 2 units: $1,472,250
  • 3 units: $1,779,525
  • 4 units: $2,211,600

Sonoma - Napa:

  • 1 unit: $877,450
  • 2 units: $1,123,300
  • 3 units: $1,357,800
  • 4 units: $1,687,450

These new limits showcase a healthy increase in conforming limits, reflecting the continued robust appreciation in home prices over the past year. As we navigate the evolving real estate landscape, these lower interest rates and adjusted loan limits pave the way for enhanced opportunities in homeownership. Stay tuned for further market developments and don’t hesitate to reach out if you have any questions!


*Source: US Dept of HUD Courtesy of Loan Officer Chris Granger of XpertHomeLending

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